44ad applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2013 is 44ad applicable on a person carrying on profession and having less than 25 lacs receipts and having profit less than 8%

Ganeshbabu K

Ganeshbabu K (Expert)
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11 July 2013 No , In such case Section 44AD not applicable..he need to get his books audited under section 44AB.

Please refer section 44AD(5).

Thanks & regards
Ganesh babu k

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2013 Section 44AD talks about "eligible business"

"eligible business" means,—
(i) any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and
(ii) whose total turnover or gross receipts in the previous year does not exceed an amount of 82[one crore rupees].

it never talks about profession

Ganeshbabu K

Ganeshbabu K (Expert)
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11 July 2013 Yes... it is not applicable to professionals

44AD applicable only to eligible business only..

And professional income not required to audited under section 44AB if it is less than 25 lakhs...and if profit shown is less than 8 % also...

However books of accounts is mandatory if gross receipts is more than 1,20,000

Sorry for my reply...it was error i have given my reply in a mind of assuming business instead of profession..

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